Beijing's biggest retaliation on tariffs, what will trump do now?
After Trump's tariffs, the sourness in trade relations between the world's two economic hubs, the US and china, has now reached its peak. beijing has taken the toughest step against Washington so far and has stopped the supply of many important and essential goods, including magnets, rare earth minerals and metals. This move by china has created a threat of stopping the supply of weapons-use goods, electronics, vehicle manufacturers, aerospace manufacturers, semiconductor companies and consumer goods to Western countries.
The Chinese government is drafting a new regulatory system for exports. While the policy is being prepared on the one hand, on the other hand, according to the New York Times, things used from magnets to cars and missiles have been stopped at many Chinese ports. According to the report, as soon as the new regulatory system is ready, there will be a permanent ban on the supply of goods to certain companies, including US military contractors.
American dependence on Chinese goods
This move by beijing to ban exports is the result of the trade war waged by the US President. china produces about 90 percent of the world's 17 types of rare earth minerals, which are used in defense to electric vehicles, energy and electronic industries. Seven types of medium and heavy rare earth minerals include smarium, gadilinium, terbium, dysporium, lutetium, scandium and yttrium, which have been put on the export control list. The US has only one rare earth mineral, while it imports most of these from China.
In response to the reciprocal tariff imposed by the US on april 2, beijing took the step of banning rare earth minerals so that the 54 percent tariff imposed on Chinese goods at that time could be responded to. The export ban includes not only mineral metals but also magnets and many such things, which will not be easy for the US to replace.
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